problem 3 mid term - $1.76 0.37 Contribution Margin...

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Tile Manufacturer If Sales Volume increases by 5%: Boxes of Tile Produced & Sold 625,000 Boxes of Tile Produced & Sold 656250 Total Unit Ratio Total Sales Revenue $2,975,000 $4.76 1 Sales Revenue $3,123,750 Less: Less: Variable Manufacturing Expense $1,720,000 $2.75 0.58 Variable Manufacturing Expense $1,806,000 Variable Selling & Adm. Expense $152,000 $0.24 0.05 Variable Selling & Adm. Expense $159,600 Total Variable Expense $1,872,000 $3.00 0.63 Total Variable Expense $1,965,600 Contribution Margin $1,103,000
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Unformatted text preview: $1.76 0.37 Contribution Margin $1,158,150 Less: Less: Fixed Manufacturing Expense $790,000 Fixed Manufacturing Expense $784,000 Fixed Selling & Adm. Expense $133,000 Fixed Selling & Adm. Expense $128,000 Total Fixed Expense $923,000 Total Fixed Expense $912,000 Net Operating Income $180,000 Net Operating Income $246,150 If the company increases its unit sales volume by 5% without increasing its fixed expenses, the net operating income will be $184,200...
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